TCS extends gains on robust Q3 results; outlook

MUMBAI: Shares of Tata Consultancy Services gained momentum in early trade as it beats estimates by reporting net profit of Rs 3,551.8 crore for the quarter ended December 2012, up 1.1 per cent, against net profit of Rs 3,512 crore a quarter ago.

The stock has risen for third straight session. It was at Rs 1,375, up 3.03 per cent, on the NSE. It touched a high of Rs 1,400 and a low of Rs 1,357.30 in trade today.

The PAT was above ET Now expectations of Rs 3,402 crore

Revenue in rupee terms for the third quarter grew to Rs 16,070 crore, up 2.88 per cent, against Rs 15,620 crore in previous quarter and above expectation of Rs 15,908 crore.

"We have had an excellent quarter of well rounded performance and have driven a higher quality of revenue," said CEO N Chandrasekaran.

"We believe that clients are going to invest in making their operations digital-ready in 2013 and drive business growth," he added.

The management is "very confident" of strong Q4, FY14. It has has said that the deal pipeline looks strong and believes clients are going to invest in making their operations 'digital-ready' in 2013.

The company's operating margin expanded by 56 basis points to 27.3 per cent.

Revenues in dollar terms increased 3.33 per cent to $ 2948 million as compared to $ 2853 million in last quarter.

EBIT Margin rose to 27.26 per cent vs 26.8 per cent and beat expectation of 26.24 per cent.